Food Retailers Boost Their Images in 2013

What keeps you up at night? Ask that question to food retailers, and you’ll get a long list.

One concern in particular is how their organizations are being perceived by consumers, especially in the wake of growing debates in the media about food safety, obesity, GMOs, etc.

But retailers may be in danger of worrying too much about image, because there are lots of good stories to tell, some of which are already getting wider play.

As it turns out, the grocery sector is increasingly viewed much as it wants to be on some fundamental attributes. That is, as a relatively easy shopping experience, competitively priced, community oriented, and socially responsible.

How did I come to this conclusion? Here’s some backup based on recent developments.

• Companies are seen as taking price seriously. Kantar Retail’s latest opening price point survey shows Dollar General and Wal-Mart Stores are slugging it out on price, with Wal-Mart closing the gap. Savvy use of everyday pricing and private labels are weapons being used by successful retailers.

• Food retailers are viewed as providing among the least complicated experiences for consumers, clearly a positive. Overall, grocery stores were named the sixth most simple industry, according to a ranking by Siegel+Gale. Aldi took the top spot on the list, cited for having honed its “good-value-for-the-money reputation.” Others cited included Publix, Trader Joe’s, Kroger and Whole Foods.

• Retailers are being recognized for supporting communities. Wal-Mart, Target Corp. and Kroger Co. were named to the roster of “Investment Heroes” by the Progressive Policy Institute. This means their investments help spur job creation and productivity in the economy, the group said.

Lots of good stories are being told. Here’s a suggested New Year’s resolution for the industry. Retailers should better publicize this kind of recognition to make sure it’s being communicated to customers. This will help build good will, reduce concerns about negative perceptions, and lead to fewer sleepless nights for executives.

Discuss this Blog Entry 1

Agreed. Certainly a lot of supermarkets have all sorts of positive stories to bring to life for their shoppers, whether it's through traditional media or their social media pages. Shoppers want to learn about these types of stories as well. One retailer I think does a great job in this area is Whole Foods Market; they often use social media to tell their own stories, but equally of interest, their producers' stories. I love to see a good "meet the producer" campaign or series of stories highlighting the faces behind a brand. It gives consumers more insight into where their favorite products are coming from and how they are made.